diff --git a/CHANGES.txt b/CHANGES.txt
index a5092743..60be92d2 100644
--- a/CHANGES.txt
+++ b/CHANGES.txt
@@ -17,6 +17,7 @@
 * path.translate() now defaults to Windows-style backslashes
 * Added NoWarnings flag for Visual Studio (xpol)
 * Added debugcommand for Visual Studio (xpol)
+* Bug 1674173: Allow source files to have the same name
 
 
 -------
diff --git a/src/actions/make/make_cpp.lua b/src/actions/make/make_cpp.lua
index 90002689..b475e9e0 100644
--- a/src/actions/make/make_cpp.lua
+++ b/src/actions/make/make_cpp.lua
@@ -113,22 +113,9 @@
 		-- precompiler header rule
 		cpp.pchrules(prj)
 
-	--[[
-		-- per-file rules
-		for _, file in ipairs(prj.files) do
-			if path.iscppfile(file) then
-				_p('$(OBJDIR)/%s.o: %s', _MAKE.esc(path.getbasename(file)), _MAKE.esc(file))
-				_p('\t@echo $(notdir $<)')
-				cpp.buildcommand_old(path.iscfile(file))
-			elseif (path.getextension(file) == ".rc") then
-				_p('$(OBJDIR)/%s.res: %s', _MAKE.esc(path.getbasename(file)), _MAKE.esc(file))
-				_p('\t@echo $(notdir $<)')
-				_p('\t$(SILENT) $(RESCOMP) $< -O coff -o "$@" $(RESFLAGS)')
-			end
-		end
-		_p('')
-		--]]
-
+		-- file building rules
+		cpp.filerules(prj)
+		
 		-- include the dependencies, built by GCC (with the -MMD flag)
 		_p('-include $(OBJECTS:%%.o=%%.d)')
 		
@@ -222,6 +209,42 @@
 	end
 
 
+--
+-- Output the list of file building rules.
+--
+
+	function cpp.filerules(prj)
+		local tr = project.getsourcetree(prj)
+		premake.tree.traverse(tr, {
+			onleaf = function(node, depth)
+				if path.iscppfile(node.abspath) then
+					local objectname = project.getfileobject(prj, node.abspath)
+					_p('$(OBJDIR)/%s.o: %s', make.esc(objectname), make.esc(node.relpath))	
+					_p('')
+				end
+			end
+		})
+
+	--[[
+		-- per-file rules
+		for _, file in ipairs(prj.files) do
+			if path.iscppfile(file) then
+				_p('$(OBJDIR)/%s.o: %s', _MAKE.esc(path.getbasename(file)), _MAKE.esc(file))
+				_p('\t@echo $(notdir $<)')
+				cpp.buildcommand_old(path.iscfile(file))
+			elseif (path.getextension(file) == ".rc") then
+				_p('$(OBJDIR)/%s.res: %s', _MAKE.esc(path.getbasename(file)), _MAKE.esc(file))
+				_p('\t@echo $(notdir $<)')
+				_p('\t$(SILENT) $(RESCOMP) $< -O coff -o "$@" $(RESFLAGS)')
+			end
+		end
+		_p('')
+		--]]
+
+	end
+
+
+
 --
 -- Compile flags
 --
@@ -290,6 +313,10 @@
 					return
 				end
 			
+				-- assign a unique object file name to avoid collisions from
+				-- files at different folder levels with the same name
+				local objectname = project.getfileobject(prj, node.abspath)
+				
 				-- see what set of configurations contains this file
 				local inallcfgs = true
 				for cfg in project.eachconfig(prj) do
@@ -303,13 +330,13 @@
 				-- if this file exists in all configurations, write it to
 				-- the project's list of files		
 				if inallcfgs then
-					_p('\t$(OBJDIR)/%s.o \\', make.esc(node.basename))
+					_p('\t$(OBJDIR)/%s.o \\', make.esc(objectname))
 					
 				-- otherwise add it to the individual configuration lists
 				else
 					for cfg in project.eachconfig(prj) do
 						if incfg[cfg] then
-							table.insert(cfgfiles[cfg], node.basename)
+							table.insert(cfgfiles[cfg], objectname)
 						end
 					end
 				end
@@ -322,8 +349,8 @@
 			if #cfgfiles[cfg] > 0 then
 				_p('ifeq ($(config),%s)', make.esc(cfg.shortname))
 				_p('  OBJECTS += \\')
-				for _, basename in ipairs(cfgfiles[cfg]) do
-					_p('\t$(OBJDIR)/%s.o \\', make.esc(basename))
+				for _, objectname in ipairs(cfgfiles[cfg]) do
+					_p('\t$(OBJDIR)/%s.o \\', make.esc(objectname))
 				end
 				_p('')
 				_p('endif')
diff --git a/src/actions/vstudio/vs200x_vcproj.lua b/src/actions/vstudio/vs200x_vcproj.lua
index da405b3c..bbf83eb8 100644
--- a/src/actions/vstudio/vs200x_vcproj.lua
+++ b/src/actions/vstudio/vs200x_vcproj.lua
@@ -775,6 +775,15 @@
 			end
 		end
 		
+		-- see if this file needs a modified object file name
+		local objectname
+		if path.iscppfile(node.name) then
+			objectname = project.getfileobject(prj, node.abspath)
+			if objectname == path.getbasename(node.abspath) then
+				objectname = nil
+			end
+		end
+				
 		for cfg in project.eachconfig(prj) do
 		
 			-- get any settings specific to this file for this configuration;
@@ -789,7 +798,7 @@
 			local isPchSource = (cfg.pchsource == node.abspath and not cfg.flags.NoPCH)
 
 			-- only write the element if we have something to say			
-			if compileAs or isPchSource or not filecfg or hasSettings then
+			if compileAs or isPchSource or not filecfg or hasSettings or objectname then
 
 				_p(depth,'<FileConfiguration')
 				depth = depth + 1
@@ -819,6 +828,10 @@
 					_p(depth, 'CompileAs="%s"', iif(compileAs == "C++", 1, 2))
 				end
 
+				if objectname then
+					_p(depth, 'ObjectFile="$(IntDir)\\%s.obj"', objectname)
+				end
+				
 				-- include the precompiled header, if this is marked as the PCH source
 				if isPchSource then
 					if cfg.system == premake.PS3 then
diff --git a/src/actions/vstudio/vs2010_vcxproj.lua b/src/actions/vstudio/vs2010_vcxproj.lua
index 3440ccc3..d2bed6fa 100644
--- a/src/actions/vstudio/vs2010_vcxproj.lua
+++ b/src/actions/vstudio/vs2010_vcxproj.lua
@@ -405,13 +405,20 @@
 			for _, file in ipairs(files) do
 				_x(2,'<ClCompile Include=\"%s\">', path.translate(file.relpath))
 				for cfg in project.eachconfig(prj) do
+					local condition = vc2010.condition(cfg)
+					
 					local filecfg = config.getfileconfig(cfg, file.abspath)
 					if not filecfg then
-						_p(3,'<ExcludedFromBuild %s>true</ExcludedFromBuild>', vc2010.condition(cfg))
+						_p(3,'<ExcludedFromBuild %s>true</ExcludedFromBuild>', condition)
+					end
+					
+					local objectname = project.getfileobject(prj, file.abspath)
+					if objectname ~= path.getbasename(file.abspath) then
+						_p(3,'<ObjectFileName %s>$(IntDir)\\%s.obj</ObjectFileName>', condition, objectname)
 					end
 					
 					if cfg.pchsource == file.abspath and not cfg.flags.NoPCH then
-						_p(3,'<PrecompiledHeader %s>Create</PrecompiledHeader>', vc2010.condition(cfg))
+						_p(3,'<PrecompiledHeader %s>Create</PrecompiledHeader>', condition)
 					end
 				end
 				_p(2,'</ClCompile>')
diff --git a/src/project/project.lua b/src/project/project.lua
index 007886d4..9551af9d 100755
--- a/src/project/project.lua
+++ b/src/project/project.lua
@@ -281,6 +281,44 @@
 	end
 
 
+--
+-- Returns a unique object file name for a project source code file.
+--
+-- @param prj
+--    The project object to query.
+-- @param filename
+--    The name of the file being compiled to the object file.
+--
+
+	function project.getfileobject(prj, filename)
+		-- make sure I have the project, and not it's root configuration
+		prj = prj.project or prj
+		
+		-- create a list of objects if necessary
+		prj.fileobjects = prj.fileobjects or {}
+
+		-- look for the corresponding object file		
+		local basename = path.getbasename(filename)
+		local uniqued = basename
+		local i = 0
+		
+		while prj.fileobjects[uniqued] do
+			-- found a match?
+			if prj.fileobjects[uniqued] == filename then
+				return uniqued
+			end
+			
+			-- check a different name
+			i = i + 1
+			uniqued = basename .. i
+		end
+		
+		-- no match, create a new one
+		prj.fileobjects[uniqued] = filename
+		return uniqued
+	end
+
+
 --
 -- Retrieve the project's file name.
 --
diff --git a/tests/actions/make/cpp/test_file_rules.lua b/tests/actions/make/cpp/test_file_rules.lua
new file mode 100644
index 00000000..eb9706b4
--- /dev/null
+++ b/tests/actions/make/cpp/test_file_rules.lua
@@ -0,0 +1,42 @@
+--
+-- tests/actions/make/cpp/test_file_rules.lua
+-- Validate the makefile source building rules.
+-- Copyright (c) 2009-2012 Jason Perkins and the Premake project
+--
+
+	T.make_cpp_file_rules = { }
+	local suite = T.make_cpp_file_rules
+	local cpp = premake.make.cpp
+	local project = premake5.project
+
+
+--
+-- Setup 
+--
+
+	local sln, prj
+	
+	function suite.setup()
+		sln = test.createsolution()
+	end
+	
+	local function prepare()
+		prj = premake.solution.getproject_ng(sln, 1)
+		cpp.filerules(prj)
+	end
+
+
+--
+-- Two files with the same base name should have different object files.
+--
+
+	function suite.uniqueObjNames_onBaseNameCollision()
+		files { "src/hello.cpp", "src/greetings/hello.cpp" }
+		prepare()
+		test.capture [[
+$(OBJDIR)/hello.o: src/greetings/hello.cpp
+
+$(OBJDIR)/hello1.o: src/hello.cpp
+
+  		]]
+	end
diff --git a/tests/actions/make/cpp/test_objects.lua b/tests/actions/make/cpp/test_objects.lua
index f7c3e147..2fe15b4f 100644
--- a/tests/actions/make/cpp/test_objects.lua
+++ b/tests/actions/make/cpp/test_objects.lua
@@ -77,3 +77,19 @@ endif
   		]]
 	end
 
+
+--
+-- Two files with the same base name should have different object files.
+--
+
+	function suite.uniqueObjNames_onBaseNameCollision()
+		files { "src/hello.cpp", "src/greetings/hello.cpp" }
+		prepare()
+		test.capture [[
+OBJECTS := \
+	$(OBJDIR)/hello.o \
+	$(OBJDIR)/hello1.o \
+
+  		]]
+	end
+
diff --git a/tests/actions/vstudio/vc200x/test_files.lua b/tests/actions/vstudio/vc200x/test_files.lua
index 61bb4faa..d9c7d40d 100644
--- a/tests/actions/vstudio/vc200x/test_files.lua
+++ b/tests/actions/vstudio/vc200x/test_files.lua
@@ -256,3 +256,45 @@
 			</FileConfiguration>
 		]]		
 	end
+
+
+--
+-- If two files at different folder levels have the same name, a different
+-- object file name should be used for each.
+--
+
+	function suite.uniqueObjectNames_onSourceNameCollision()
+		files { "hello.cpp", "greetings/hello.cpp" }
+		prepare()
+		test.capture [[
+		<Filter
+			Name="greetings"
+			Filter=""
+			>
+			<File
+				RelativePath="greetings\hello.cpp"
+				>
+			</File>
+		</Filter>
+		<File
+			RelativePath="hello.cpp"
+			>
+			<FileConfiguration
+				Name="Debug|Win32"
+				>
+				<Tool
+					Name="VCCLCompilerTool"
+					ObjectFile="$(IntDir)\hello1.obj"
+				/>
+			</FileConfiguration>
+			<FileConfiguration
+				Name="Release|Win32"
+				>
+				<Tool
+					Name="VCCLCompilerTool"
+					ObjectFile="$(IntDir)\hello1.obj"
+				/>
+			</FileConfiguration>
+		</File>
+		]]
+	end
diff --git a/tests/actions/vstudio/vc2010/test_files.lua b/tests/actions/vstudio/vc2010/test_files.lua
index 52de9ff7..750fd69d 100755
--- a/tests/actions/vstudio/vc2010/test_files.lua
+++ b/tests/actions/vstudio/vc2010/test_files.lua
@@ -129,3 +129,24 @@
 	</ItemGroup>
 		]]
 	end
+
+
+--
+-- If two files at different folder levels have the same name, a different
+-- object file name should be used for each.
+--
+
+	function suite.uniqueObjectNames_onSourceNameCollision()
+		files { "hello.cpp", "greetings/hello.cpp" }
+		prepare()
+		test.capture [[
+	<ItemGroup>
+		<ClCompile Include="greetings\hello.cpp">
+		</ClCompile>
+		<ClCompile Include="hello.cpp">
+			<ObjectFileName Condition="'$(Configuration)|$(Platform)'=='Debug|Win32'">$(IntDir)\hello1.obj</ObjectFileName>
+			<ObjectFileName Condition="'$(Configuration)|$(Platform)'=='Release|Win32'">$(IntDir)\hello1.obj</ObjectFileName>
+		</ClCompile>
+	</ItemGroup>
+		]]
+	end
diff --git a/tests/premake4.lua b/tests/premake4.lua
index 8b8911ee..c7d0dc51 100644
--- a/tests/premake4.lua
+++ b/tests/premake4.lua
@@ -158,6 +158,7 @@
 	dofile("actions/make/solution/test_help_rule.lua")
 	
 	-- Makefile C/C++ projects
+	dofile("actions/make/cpp/test_file_rules.lua")
 	dofile("actions/make/cpp/test_make_pch.lua")
 	dofile("actions/make/cpp/test_make_linking.lua")
 	dofile("actions/make/cpp/test_objects.lua")